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Mitsubishi to close in March : Car Advice | News Blog

Mitsubishi to close in March

February 5, 2008 by Matt Brogan  




Mitsubishi LogoUpdate: Mitsubishi confirms plant closure.

It’s official, Mitsubishi Motors Australia has pulled up stumps and will close its Adelaide Tonsley Park assembly plant by the end of March.

Around 2000 workers could soon be out of a job as a result. Mitsubishi workers will have their redundancy and leave entitlements paid in full.

There is a possibility the South Australian government will sue Mitsubishi to reclaim the millions awarded in recent grants.

A few hours ago Mitsubishi Australia president Rob McEniry told workers at the Tonsley Park plant of the decision from Japan.

Workers at the Adelaide plant will have the rest of the week off on full pay, returning to work on Monday.

Australian Manufacturing Workers Union (AMWU) state secretary John Camillo said Rob McEniry spoke to the workers, “it was very emotional,” he said.

“He indicated that one hour ago Mitsubishi Motors Corporation in Japan made the announcement to close the Tonsley Park operation.”

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Comments

45 Responses to “Mitsubishi to close in March”
  1. John S says:

    yeah the typical aussie way…sue because we dont get want we want…

    reality is mitsu locally wasnt being competitive in the local scene…good cars…underrated publicity equals disaster…

    now only if those japs also pulled out of the southern waters and left our whales alone too…

  2. Oz. says:

    Oh that’s scary! :(

  3. Yianni says:

    So this is the end of the 380 I’m guessing? I wonder how cheap they will go till they get rid of them all now.

    Or will we get the imported Galant from the USA after this?

  4. Dan says:

    It is a very dark day for Australia.

  5. Matt says:

    I just hope the flow on effects aren’t too dramatic. Mitsu and 1000 odd production workers are bad enough, but think of all the smaller companies that feed Mitsu, Toyota, Holden & Ford – they’re in a predicament too now. Not as big granted, but still… possible scary times ahead for a while.

  6. Bret says:

    John,
    Mistu and the SA Govt had an agreement in place. The Govt put up some $35 mill, Mitsu gauranteed to keep manufaturing until 2010.
    Hell, yes I want my money back! The SA roads could use it – badly.

  7. John S says:

    bret yeah i know that but it seems so juvenile and so pedestrian to straight away come up and say hey im suing you because you didnt keep your end of the bargain…how about working it out first…surely mitsu japan has squillions to splurge on a little law suit…but seriously…suing a company for pulling out does not bode well for other prospective investors.

  8. Titan says:

    Was bound to happen eventually. It doesn’t make economic sense to make cars in Australia (unless your Australian of course).

  9. KC says:

    As a Mitsu driver myself, I’ll be the first to say that I saw this coming from a mile off. The 380 sucked in general and that abomination we saw on CAdvice just two articles below this proves that they were truly desperate. To be honest they should have dropped the 380 completely and focused on the lancer and such.

  10. Peter says:

    I think they knew the 380 was going to be laid to rest soon. I mean, look at all of Mitsu’s advertising of late; it has been all for the imported models. I’d hate to see imported RHD Galants though – erases all of MMAL’s hard work.

  11. James F says:

    And then there were 3… It is indeed a sad day for Australian motor industry. I agree this was coming for some time – so none of us should be shocked.. Put simply, crap sales, massive losses = inevitable closure.

    I agree with a comment that Mitsi should have focused on small cars rather than the 380. Ford are looking to produce the Focus in 2011 so it could be the sign of the times..

    Anyway my toughts go out to all the workers, their families and all those little companies who live (or lived) off Mitsubishi.. Hoping you all get work elsewhere with little hassle..

    damn…

  12. Frugal One says:

    Ford will kill its Falcon in the future…/

    MARK MY WORDS!!Focus is NOT the anwser either

    So we will be left with just 2, but 2 good ones.

    Cheers

    F-0

  13. Bret says:

    F-O
    Don’t bet on Ford Aus ceasing manufacturing anytime soon (you just wish). Focus will be exported to most of the markets currently served by South Africa, when production shifts to Aus.
    BTW: The last time “tarrifs” were in the headlines only one manufacturer said “we’ll pull out of Aus manufacture if tarrifs are reduced” Yep: Toyota!!

  14. Phill says:

    The 380 was doomed from the start with a dumb name like that

  15. Brett says:

    It is a sad day for Australian Manufacturing. I dare say that Falcon will be next in line, although this will still be a few years off.

    On another note look at what Ford did with the Territory – using an existing platform and parts bin from the Falcon and they did it for $500 Million. So with the $600 Million spent on ‘Australianising’ the US Galant to make the 380 we have today, i think it would have been $600 Million well spent if they had have based a new model on the existing Magna platform back in 2004/5 as it would have retained AWD and would have no doubt been a better suited design for the Australian market. They could have also exported it to the US/Middle east as a niche AWD Sports/Luxury sedan too. In the end i’m sure MMAL were on a tight leash as opposed to the freedom that Ford and Holden have when designing/producing their own cars in Australia.

    My thoughts are with the Mitsu Workers and their families!

  16. Luke G.T. says:

    Titan, who’s Australian. I hope you are not referring to Holden because it is 100% American owned. Nothing Ozzie about it. Well, no more then the other local manufactuers.

  17. Oz. says:

    I think you right Phill. If Mitsu kept the name “Magna” and not a number, maybe this would never of happend.

    “freckle-one” Go away, we don’t need you idiots like you, jerk. You have an attitude of an AI computer bot, or a news reporter from ABC.

  18. o says:

    soory families this was gonna happen and face it at least you wont have to build that dreadfull facelift america should of taken ozs design atleast it was better should of also kept magna name and possibly built yur own car not a rebadge

  19. Liam says:

    That this was inevitable doesn’t make it any less unfortunate. What is worse, I think, was the fact this wasn’t done BEFORE the launch of the 380. A locally manufactured large Mitsubishi was never going to work in this country and it should never have been made.

  20. realcars says:

    This is tragic news. I can’t help but think that state and federal govt departments could have bought 380 instead of camry/ aurion and kept them afloat and at a better price albeit. Yes I agree that they should have used the AWD platform of the Magna would have given them a distinct advantage in this class.
    As long as lemmings blindly buy toyota and toyota continue to buy opinion and support nothing will stop them from wiping ford out then holden. Soylent green for all urrrrghhhh!!!!

  21. Titan says:

    Luke G.T., what I mean is that having car built locally generates employment both directly and indirectly. As others have alluded to, losing this facility will not only detrimentally affect the Mitsubishi employees but could potentially follow on to others as well.

  22. Titan says:

    Realcars, what a load of rubbish…

  23. Duck says:

    Titan,
    Do you go for the titans or is that just your name?

  24. Chad says:

    Well if they aren`t selling them I guess it makes no sense, so I guessing it will be Ford next if they start building cars with the same quality as the Falcon and then we will be left with the Camry and the Commodore how boring that will be thank god for imports. Abolish the tariffs immediately so everyone can enjoy driving decent cars and hopefully kill off the other deadwood.

  25. Duck says:

    So was that the whole amount of workers Mitsubishi australia have 2000 (will did have) if that is how much they had, how much workers has Holden got in Melbourne? And Ford in Austrlaia?

  26. mark says:

    Dont get me wrong it is sad that 2000 people dont have jobs, but how long did they think it would stay open making 1000 cars a month! Alot of staff should have got out along time ago coz it will be a pain to get a job in SA now.
    It is just a matter of time before Toyota announce that they have bought the plant after the plant shuts down and all of the political crap is sorted. You may laugh at this but it will happen, just watch and see!!!!!!!!!!!!! TP will get off on this idea. lol.
    It will be the home of the Aus made corolla with abit of export.
    so who wants a bet? MMMMMMMM

  27. Frugal One says:

    Actually, i am with Chad above.

    If they cannot make something without tariff protection, then they should not be building it.

    Also the unique ADR’s need to be tweaked so that imported cars that are legal in Jp. should be allowed here with min. work [not like $5k now]

    Ford have bet the farm on new Orion, i think its doomed, not many want a large car, and no export, no high profit luxo ltd/fairlane either.Ford should have taken a leaf out of Holdens book.

    Cheers

    F-0

  28. Frugal One says:

    Mark above, you are 100% correct.

    One of the other 2 [Fords doomed] should buy it at firesale price, its near all new, low use, trained staff etc etc, get govco grants and start to produce a vehicle.

    Yeap Corolla is #1 seller in Oz for Jan. and #2 overall last year, its the perfect vehicle to be built there

    Cheers

    F-0

  29. SRTargets says:

    I dont know, but I see VW buiyng the plant instead.

  30. Duck says:

    Mitsubishi only makes 11,000 cars a year. Compared to Holden and Toyota 100,000 plus

  31. Duck says:

    ^^^^^^Mitsubishi australia

  32. Duck says:

    Mitsubishi still has there main plant in Japan

  33. Elitist says:

    Misubishi has had a bad run ever since the recalls in early 90’s.

    All I care about is to see Holden and Ford shut plant. Then we just remove car foreign car taxes once and for all that protected these two redneck cars from being slaughtered and just import quality cars from Italy, Germany and Japan.WIN WIN…

  34. Fred says:

    It’s a shame the worthy 380 is overlooked and people churn to that worthless VE. Yeah, the name is quite silly. Verada, Magna, Sigma and maybe even Galant are in every way better monikers. Maybe Mitsu were just trying to be Euro with three digits, but obviously it’s never the same aura as BM or Benz.

    People may have lost credibility in the 3-diamond because of recent global problems which also spawned their withdrawal from WRC. Well, it’s pretty nutty to think that because many Aussies still patronise the Commodore after proving itself a piece of crap after a couple of decades. Numerous recalls, reliability issues, freefall depreciation and the fact that VT-VZ owners can’t get a replacement door straight up are just a comedy of errors, to name a few, but none of them seem to awaken the country.

  35. Joh says:

    It is a shame Mitsubishi have pulled out of Aust, but with their global money issues it was inevitable – and the 380 was not the car to topple the Holden and Ford, in-fact unless Mitsubishi and Chrysler joined forces again Mitsubishi does not have a car suitable anywhere in its lineup to compete.

    As for the 380 – in hindsight it was a car with a large engine for its intended market segment – and I’m surprised a smaller V6 or Mitsubishi’s 2.4L 4-cylinder was not offered (which would have made the car more lineball with Camry)…

  36. Duck says:

    Mitsubishi said they will continue to make the 380 and parts for it for another 10 years

  37. Duck says:

    Where is Toyota’s Plant in Australia?
    Does nissan have one in Oz?

  38. Duck says:

    WRONG MARK!!!!!!!!!!!!!!! Mitsubishi Australia only makes 11,000 cars a year so its quite easily done!!!!!!!!

  39. Duck says:

    I’ll answer one of my questions! Nissan doesnt have a plant in Oz. Ford, Holden and Toyota will be the only companies that have a facility in Australia

  40. Oz. says:

    “freckle-one” Why do you hate Ford so much?
    If you do like Ford in any way you need to stop saying they “doomed”. also there is no proof in that yet.

  41. Gibbo says:

    this never would have happened if the 380 was rear wheel drive

  42. Duck says:

    ^^^^^^Wrong look at the aurion! Mitsu just couldnt make enough vehicles of the 380 thats all!

  43. steevie says:

    Look! No automotive company will expand in Australia when they the automotive industries are moving off shore. the next two manufacturers to go will be GMH & Ford. Ford are counting on the next Falcon to save them as did Mitsubishi with it’s 380.Also Holdens are pinning their hopes on the export of the Commodore AKA Pontiac G8 which will no doubt fail because North Americans being the patriots that they are will only support the local industry rather than purchase imported Commodores from Austria?!!!. GM are losing money and cutting thousands of jobs in the U.S as we speak.

  44. Shane says:

    Can anyone tell me if the 380 is a good car or not. I’m hearing alot of gossip about Mitsubishi but nothing to say there is anything wrong with the 380 (except for the name). When they closed in 2008 they claim to have spare parts stored away to last 10 years, so thats not a problem. What I want to know is, are they reliable? I think they look good, particularly in black and I was going to test drive one today. Any advise welcome

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